Monthly Archives: December 2013

Apartment s and land prices in Chennai, Anna Nagar has seen an upswing in the past 3 months and prices have risen by 6-8 lakhs per 1000 sq. ft.

The PropIndex Data states that in July-Sept 2013, the average price rise in the area has been up to 12% in capital values and 10% in rental values. The factors impacting price rise of real estate in the locality is the well-developed infrastructure in the area. However, there is a mismatch between the demand and supply which has also triggered the high prices. The ratio here is 90:10 and the high price quoted by land owners and slow clearance process of Chennai Metropolitan Development Authority is another reason of delay in closing the deals which ultimately impacts the supply adversely.

There are 4 arterial roads in Anna Nagar which connects this part of the city with other parts of Chennai. Another reason for increase in prices is the, the construction of Metro towers within 1-2 kms of Anna Nagar and the nearest metros station would be at Second Avenue Road.

Anna Nagar has an established social and civic infrastructure that includes police stations, fire stations, reputed schools, colleges, government colleges, private hospitals, malls and local markets. Two major bus terminals include East terminus located near Anna Nagar Roundtana and West Terminus situated next to a hundred-feet wide road. Also, the area enjoys the proximity to the Chennai Airport and Chennai Central Railway station through Grand Southern Trunk Road (GST), which makes Anna Nagar a popular residential option.

While investments in real estate are a wait watch game, Chennai has changed this patter and investors are now investing in the city for quick returns. The main reason is because Chennai is a very conservative city and hence property prices have remained stable and gradually appreciating, depending on the demand. It is this stability that has attracted investors.

The investment costs in Chennai are cheaper compared to other cities, since the builders are absorbing the costs of materials and labor, to keep up with competition. That said, prices may still go up by 10-15 per cent due to high land prices and construction costs. The demand supply factor influences the appreciation of prices, and sectors like IT, automobiles and manufacturing industry trigger surplus money for investment, into this sector.

Well-developed infrastructure within the city contributes to increased prices for land. Also the ongoing Chennai Metro project will also contribute significantly for the appreciation. Proposed Elevated corridor, along OMR, monorail projects are major contributors for another round of appreciation in the near future – says Project Marketing Services Experts at Ikia Consulting Services.